Property Valuation
Accrued depreciation in the cost approach represents:
AThe original cost of construction
BThe total loss in value from all causes since the property was new✓ Correct
CFuture anticipated decline in property value
DThe cost to reproduce the building at current prices
Explanation
Accrued depreciation is the total loss in value of improvements from all causes (physical deterioration, functional obsolescence, and external obsolescence) measured from new condition to the date of appraisal.
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